Oops! They killed me (well almost!). Not exactly part of the plan, but a possibility that had to be entertained and mined. And this is the big one: an accusation from beyond the grave that the directors of the Absolute group companies murdered one of their members to protect their reputation. How will they bribe and intimidate their way out of this?
Well they won’t. The writing is on the wall. Absolute’s latest business model has mananged to sink further into the sewer from hard selling nothing to a virtual pyramid scheme.
Absolute’s fractional ownership with guaranteed return over three years is a Ponzi Scheme for the following reasons:
1. Income stream is almost exclusively from selling fractional ownership, not renting rooms. The rooms are given free/at cost to prospective clients. The Agoda rates are not competitive with nearby hotels.
2. When all units are sold, rental income will be approximately 25% of current guarantees, immediately causing Absolute losses (unless they use the property to get sales for new ones – making the pyramid even bigger).
3. At the end of the guarantee period (or sooner if the word gets out) the value of the properties will fall 75%. Read the rest of this entry »










